US court blocks reciprocal tax, President Trump declares tax still in effect
According to local media, a US federal appeals court on August 29 ruled that US President Donald Trump's "reciprocal" tax measures were illegal, affirming that he did not have the authority to unilaterally impose taxes based on emergency powers without congressional approval.
The ruling, reviewed by all 11 judges of the U.S. Court of Appeals for the Washington Circuit, upheld a lower court decision, marking a major blow to Mr. Trump’s “America First” trade strategy. The plaintiffs, five small U.S. businesses and 12 states, argued that the persistent trade deficit did not constitute an “unusual and serious threat” that would trigger emergency powers.
The court stated: “The Act broadly empowers the President to take certain actions to respond to a national emergency, but does not include imposing tariffs, duties, or similar measures.”
The Trump administration argues that the judiciary lacks the authority to review these “discretionary” actions and warns that an adverse ruling would weaken Washington’s leverage in trade negotiations with China and other partners.
The case is now expected to go to the US Supreme Court, becoming a major test of the president's power in the field of trade.
Previously, Mr. Trump warned that if the court rejected his opinion, the United States would fall into a state of "the Great Depression of 1929 all over again."
After the court's ruling, the US President wrote on the social network TruthSocial: “ALL TAXES STILL IN EFFECT! A partisan appeals court wrongly said our taxes should be removed, but they know America will win in the end. If this decision is upheld, it will destroy our country. Thanks to the Supreme Court, we will make America rich and strong again!”
Mr. Trump's tariff program currently brings in about $30 billion a month to the federal budget and is expected to increase sharply after the new tariffs take effect from August 1.
